s 9 Cheques, contract notes or policies of insurance drawn on forms supplied by bankers, stockbrokers or insurers authorized in that behalf need not bear a stamp
(1) The Collector may, authorize any banker to compound for the payment of duty on unstamped cheques, any dealer to compound for the payment of duty on unstamped contract notes, and any insurer to compound for the payment of duty on unstamped policies of insurance, on the following conditions: (a) that the said cheques, contract notes or policies of insurance be drawn or drawn up and issued on forms to be supplied or adopted by the said banker, dealer or insurer; (b) that the said banker, dealer or insurer do levy upon or charge to the person to whom such cheques, contract notes or policies of insurance are issued the stamp duty mentioned in the First Schedule; (c) that the said banker, the dealer or insurer do pay on the 1st day of each calendar month in each year to the Collector the amount due and collected thereon as duties on such unstamped cheques, contract notes or policies of insurance, and where he fails to pay the amount due on each date specified or within fourteen days immediately thereafter, he shall in addition to the amount due pay a further amount of two hundred ringgit or ten per centum of the amount due whichever is the greater and any amount due shall be recoverable as a debt due to the Government; (d) that the said banker, dealer or insurer do deposit with the Collector, as security for the due payment to the Collector of any moneys payable under paragraph (c), such sum, if any, as the Minister of Finance may direct. (2) Cheques, contract notes or policies of insurance drawn or drawn up and issued on forms supplied or adopted by such banker, dealer or insurer in accordance with this section shall be deemed to be duly stamped. (3) Where a banker, dealer or insurer has been authorized to compound for the payment of duty on unstamped cheques, contract notes or policies of insurance as provided in subsection (1) the Collector or any person authorized by him in writing, may, at all reasonable times, inspect any stocks of unstamped cheques, contract notes or policies of insurance held by the banker, dealer or insurer and any books kept by him in connection with the issue of such cheques, contract notes or policies of insurance.